Correlation Between Beijing Enlight and Bus Online
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By analyzing existing cross correlation between Beijing Enlight Media and Bus Online Co, you can compare the effects of market volatilities on Beijing Enlight and Bus Online and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Enlight with a short position of Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Bus Online.
Diversification Opportunities for Beijing Enlight and Bus Online
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Bus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online and Beijing Enlight is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Enlight Media are associated (or correlated) with Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Bus Online go up and down completely randomly.
Pair Corralation between Beijing Enlight and Bus Online
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 0.5 times more return on investment than Bus Online. However, Beijing Enlight Media is 2.0 times less risky than Bus Online. It trades about -0.04 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.09 per unit of risk. If you would invest 955.00 in Beijing Enlight Media on October 20, 2024 and sell it today you would lose (25.00) from holding Beijing Enlight Media or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Bus Online Co
Performance |
| Timeline |
| Beijing Enlight Media |
| Bus Online |
Beijing Enlight and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Bus Online
The main advantage of trading using opposite Beijing Enlight and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Bus Online can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bus Online will offset losses from the drop in Bus Online's long position.| Beijing Enlight vs. State Grid InformationCommunication | Beijing Enlight vs. SSAW Hotels Resorts | Beijing Enlight vs. Jinxiandai Information Industry | Beijing Enlight vs. Sharetronic Data Technology |
| Bus Online vs. Liaoning Dingjide Petrochemical | Bus Online vs. Guangzhou Haozhi Industrial | Bus Online vs. Rising Nonferrous Metals | Bus Online vs. Liuzhou Chemical Industry |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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